USD/JPY Weekly Price Forecast – US Dollar Continues to See Upward Pressure Against The Yen

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US Dollar vs Japanese Yen Weekly Technical Analysis

The US dollar has been fairly noisy during the week against the Japanese yen, but that’s to be expected. We had both an FOMC meeting and a Bank of Japan meeting, so there was always going to be a bit of concern when it comes to potential fundamental noise.

That being said, it looks like we are recovering, and it looks like we are just basically working off some froth trying to determine whether or not we can get above the 158 yen level, an area that’s been significant resistance. And then again, we also need to pay close attention to the 160 yen level, an area that seems to be a trip wire for the Bank of Japan as they intervened near that level in the past.

With that being the case, the market certainly looks as if it remains a buy on the dip scenario, with the 155 yen level underneath being massive potential support. So with this, I like the idea of buying these dips and not necessarily worrying about trying to get too cute with this. You get paid at the end of every day. So it is worth recognizing that it is a positive swap and therefore you can’t short it. I think a lot of institutional traders are looking at this through the same prism as well. So as long as that’s going to be the case, I just don’t see a situation where we can do anything other than buy any signs of weakness that give us an opportunity to pick up cheap greenbacks.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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